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MONEY With Melissa Francis

News/Business. Melissa Francis with a breakdown of the day's top stories and their impact on the American Taxpayer.

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01:01:00

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mpeg2video

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ac3

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1280

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720

TOPIC FREQUENCY

America 14, Us 10, Washington 9, New York 7, John 6, John Stossel 4, Versailles 3, Oklahoma 2, Amtrak 2, Fracking 2, Brooklyn 2, D.c. 2, Alaska 2, U.s. 2, Denmark 2, Parases 1, Burger King 1, Felix Ortiz 1, Jason Lugsk 1, Michelle Obama 1,
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  FOX Business    MONEY With Melissa Francis    News/Business. Melissa Francis with a breakdown of the  
   day's top stories and their impact on the American Taxpayer.  

    August 23, 2013
    12:00 - 1:01am EDT  

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>> i wish we had more time consulting could not happen to a worse company >> john: tonight we eastbound pose myths and lies. >> politicians tell us what food we can eat. >> what difference of it of yours what i put in my body? >> a little fat and sugar. >> john: we're told fracking will plague our water. >> but fracking is good. >> it's an amazing story. >> also because stupid people do this, these people lose their jobs? >> we're less safe because of you awful people. should government deliver the il? shouldt build speed at this trains?
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we look for answers at the seat of power. we're always addingurdens, who is we, washington, when they don't let a camera around. there is so much money here, life is good >> john: we start with myth number 7 because americans are so fat it's government's job to help us eat better. >> changing old habits is never easy. >> john: no, it's not. so the first lady says to change behavior. >> it's going to take government doing its part. >> john: if michelle obama wants to inspire us by exercising on the white house lawn, that is great but with government it's force. >> this is not banning what you are buying but simply the size of the cup that can be used. >> john: in my hometown, they are upset about big cups of
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soda. they want big cups illegal. >> this is biggest thing to curb esity. >> john: i can buy two of these, that is 32 ounces around i can buy one of these. how does this curb obesity? >> my mayor is proud he has forced every chain restaurant to clearly post calorie koonth. >> there were few skeptics but now they are national models. >> john: that sadly that true. under obamacare all big chains will have to post calorie counts even though they don't work. professors track customers at mcdonald's burger king and kentucky fried chicken, ha the customers noticed the calorie couldn't counts but they found people ordered more calories. the offer of the food police jason lugsk studied it to.
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>> labels don't change behavior at all. what you are doing is asking companies to undertake a cost that has essentially no benefit to the consumer. the government is stepping in your daily food choices even though they know it doesn't work. what kind of government is that? >> john: an intrusive one. in my state, most eager to ban foods and signs be posted is felix ortiz. >> they ate more. >> i disagree with that. >> the ban of salt in the restaurants in the state of new york. >> too much salt is bad for some people, people with hypertension, but there is no evidence that it is harmful to most of us. >> some studies show that reduced salt intake among some segments increased the chances of death. >> john: so you shouldn't have salt, i can't have salt? >> it's based on statistics that
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is coming o. >> john: maybe 20% of the people, that is not everybody. >> hold the cheeseburgers, across the pond, denmark is the first country in the borl to i remember pose a fat tax. >> john: some say consumers should pay more to buy less healthy food. >> denmark has decided to implement a fat tax. basically you go to the supermarket and you buy a food above a certain level of fat, they charge you extra. we feel good about this? >> john: it passed danish parliament but switch to cheaper foods that were just as unhealthy or shop at neighboring countries. within one year they repealed the fat tax. they repealed it. >> they repeal it, i think they are making a big mistake. >> john: they tried your dumb idea for a year, they said -- oh
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my goodness, bad idea. >> i believe great ideas. >> john: under great ideas is texas on candy or fast food. >> how d you define a fast-food you can go t mcdonald's or you can order a big mac. you will bet the lobbyists will make the rules. >> john: they have a problem with the candy tax. they decided this hershey bar is taxable candy but this one isn't because it contains flour. store clerks don't know what to charge. >> flour, sugar and eggs and salt. >> her dessert won an award. >> don't you think are poisoning people? you are making everybody fat. >> no, a little fat and sugar, what would life be. >> w asked her to make donuts? >> it has no sugar and no salt and very little fat.
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it's fried and baked how different it can be without all the good stuff. >> john: egg whites, that is good. >> it's good but not like egg yokes. >> john: let's try a taste test. we got a healthy donut and regular donut. everybody liked the regular dough in and out nutd center. >> john: how about the other one? >> not as good. >> john: i wanted to like the hlthy donut. it's like eating bread. >> not what i'm looking for. >> some people did like the healthier version? >> it's good for a baked donut. >> john: it's good that people have choices. >> we try to give you an option. >> john: where do you say you are giving more choice. you are banning things and giving less choice. >> let me say, you are absolutely right, some trying to
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ban that is not good for the consumer. >> john: you are a bully? >> i have been called worse. >> john: what business is it of yours that i put in my own body, isn't that freedom? >> you can have the freedom but when it comes down to healthcare costs, then we need to talk and government will be blamed. >> john: because government is responsible. we have a socialized healthcare system, you get to take away my freedom? >> i think what i'm trying to do is help you have a better life. >> john: you are like a cancer. you are spreading the bad thing that costs a lot of money and do any good? >> i am a good cancer for providing good healthy advice for the best public health of our country. >> john: a good cancer. that brings us to mh number 6. obamacare is good for business. [ applause ] >> john: democrats say it is. >> the fact it's very good for
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small business. >> they are why we committed us to this cause. >> john: white house says business will not suffer under health reform. >> john: all good, obamacare? >> you can't be wealthy unless you are healthy. >> you remember the congressman support of obamacare. >> remember the republican plan, don't get sick. if you do get sick, die quickly. >> john: i was surprised he used to be a businessman and help create a tech company. >> john: you are unusu having created wealth, run i.d. t. -- i would think you would see the burden of all these rules. >> one rule has had a dramatic iact on job creating or small business. >> john: it's the pile ofules. here is obamacare and this is just the start.
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many pages say the secretary shall produce more regulation. >> put together i would say a pile of rules. >> john: what about the tax on medical devices. a puchblg of democrats object to this. >> obamacare makes a steep tax on pacemakers, digital thermometers. it can be a profit business but it's one that saves lives. new tax means they will save fewer lives association now many senate democrats want thatart of obamacare killed. don't we want more medical devices? >> when you pass a law that costs sething you have to come up with the money for it. >> john: obamacare forces more business owners to pay more for workers' health re. lauren goodrich runs restaurants in maine and new hampshire and hires lots of kits kids and
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offers health insurance. >> you got 20 subway shops. how many employees? >> i have 180. >> so the point is to get your employees better healthcare. >> i think its noble cause but i can't provide every single employee. in a low margin retail restaurant business, this entitle devastating. >> john: he says his profit margin is smaller because he had to pay specialiststo try to explain the rules. >> accountants and insurance agents and lawyers to filling out how will i comply were the bill and they still can't give meet answer. >> john: obamacare says he must buy expensive insurance or pay a fine. he either will slash his plot of. >> i can hear people saying so what, he has 20 stores, make less profit. >> you could say that.
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you would have to have a profit to be able to expand your business. i won't be hiring more people. i have customers come in with the exact change for their lunch in their hand. they are very cost conscious. >> who are these businesses on the margin. on the basis of that we're going to deny 15 million people coverage? >> john: it's nice to give people coverage but it does impose costs. he says the costs will force him to cut full time workers. >> i'll have to cut many people down to part time. >> and people the law was meant to help. maybe him or her will be hurt. >> they'll have to work two jobs to make ends meet which is sad. >> john: the extra burden, y are always adding burdens. >> who is we? >> john: you democratic
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congressmen especially. >> i visited communist countries. i know what it looks like to be in a place where tre really is a burden, i don't see our country being that way. >> john: and we're n, yet, but we should learn from history and stop putting more burden on guys like him. >> you need me. employ your teenagers. some run off to make their own business because of my training. >> john: coming up, the new celebrity cause, stopping fracking. ♪ ♪ ♪ please don't track my mototott
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>>. >> john: myth number five, our drinking water is in danger because oil companies frack. what is that? >> controversy is over chemicals being injected into the earth to break up rock and release natural gas. >> john: it means shoving chemicals into the ground to frack the rock to release oil
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an gas. this has been done for 60 years. but they learned how to drill sideways, america has much more and cheaper natural gas. this means families pay less to heat their homes. soon america may be self-sufficient in energy. also, if you are worried about global warming, burning natural gas releases less greenhouse gas than oil or coal. >> flack go feels wrong. it feels like you are pumping stuff into mother earth. >> john: a liberal european environmentalist points out that europe promised to cut greenhouse gas emissions but didn't cut them. >> we managed to cut half what you accidentally happened to do when you stumbled on fracking. >> john: so it brings fuel cheaper, maybe better for the world. why are these people so mad? >> they worry about energy companies shoving these chemicae
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ground. >> this is seen sfraen a documentary called gas lane. >> the documentary gas land. >> they gave it director an emmy and matt damon features greedy energy companies destroying the promised land. >> if it happens to one of us, it could happen to us all of us. >> john: yoko ono started artists against fracking. and so is the left wing media. >> it comes up by the millions of gallons and protests grow.
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>> a lot of people are getting sick. >> john: you would think assistant the anti-fracking movie includes this frightening scene. >> oh, jesus christ. >> john: so much gas in his water he could light it. >> what you are seeing is real. >> john: an influential environmental group, river people. >> all the people from the company, says this isn't our problem. this was there in the first place, but they are lying. >> john: he and the gas land movie says this is much more likely to happen after fracking but when state and environmental officials investigated they conclude fracking had nothing to do with it. it was just gas that is naturally in the ground. that happened. there are many places in america where no tracking is done, but water still catches fire. this is a lake in alaska. this man lives in new york where fracking is banned, yet... and
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if fracking doesn't cause these problems. why the headlines about ruined wells. film maker checked out pollution claimed made by them. >>ave you done independent testing? >> we did way back two years ago. >> john: he was oddly vague about the results. >> i can't remember what that shows. >> john: he says the well water was dirty and dark. when they checked, it wasn't. >> it changes from day to day. >> john: they demanded that pennsylvania environmental officials tested the water and epa did and concluded the water was fine and reported that good news them. listen to his reaction. >> i'm sick and tired of this. what happened. >> we tested your water and at this point in time we found no
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contaminants in it. >> john: even epa director says. >> in no cases we determined that the fracking process have caused chemicals to end groundwater. >> there is risk. the protesstors say instead of track arica should just use less energy and invest in alternatives. >> renewable energy would be that, wind, solar, geothermal. >> there is more energy in algae in any other source. >> john:, no, renewable energy doesn't provide the world with the power we feed. >> if you got your way there would be no progress. oil, natural gas, fuel is dirty but otherwise we would be living in the dark ages. >> i hear the zealtry coming from the other side. i see statistics that are uncomfortable for you and the
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people who are in favor of t th. >> john: on his side in my state protestors persuaded to stop all tracking in new york. that makes me uncomfortable because the world needs energy. energy is limited. >> life is cruel and life is short. energy matters. we take it for granted. we really shouldn't. >> john: coming up something
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♪ ♪ ♪ >> john: number myth number 4, we're safer because of lawsuits against reckless companies and dangers products. that is logical but what if you want to buy one of these plastic gas cans. >> largest manufacturer has closed up shop. >> john: that was in oklahoma. >> nothing has made me prouder
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to see the way this the team finished this job. >> john: after 50 years, 15 people lost their jobs. >> these people were my family. >> my plan is to go home and lay down and cry. >> john: companies disappear all the time. markets change. new products emerge but this company made something that is high demand. what happened? this happened. some people use the gas cans positive to pour gasoline on fire. some were burned and some were killed. it's terrible but is it the gas can's fault? >> oh, my god. >> people with the cans. >> the lawyers have designed systems that are good for
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lawyers and bad for our community. >> john: the lawyers. >> if you or a loved one.... >> john: if you get hurt it's easy to findawyers eager to take your case for a percentage. >> don't wait, call me day. >> john: a lawyer didn't sue them but he defends his colleagues that did. >> the flame arrester would prevent the explosions because of the background of flames. >> a flame aester. it's inserted inhe spout and my prevent fire from crawling up into the can. it might. they are testing them in plastic gas cans and so far the test show it might make the cans more dangerous because they clog and stati electrity can start a fire. that is probably why no plastic
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gas can includes flame arresters. >> it's up to the jury to listen to the experts and hear about the research. >> john: but the jurors isn't scientists and they see a pour victim and they want to help. >> it's very dangerous. if they can make the product safer, why don't they. >> because it would cost more and clog. it could cause more danger. its debate, but once you lawyer parases step in, the debate is over because you cost so much. >> ion't think that is the case. if a company decides to make a product and put it out on the market they are required to do what is reasonable. >> john: juries are called upon to decide what is reasonable but the legal system that stacked against companies that make a product that can burn people. >> the warnings are not
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distinguished at all. >> lawyers often win money saying there shuck more warning. a simple ladder today includes 30 warnings. >> have you ever looked at birth control label? >> i have not. >> john: this is what the lawsuits, do both sides of the page, there is so many warnings, none of us read them. we are less safe. >> that is up to a jury. people are going warn labels in general. >> when they we first sued it fought back and won. >> it cost us $2.5 million to win. >> john: even whether you win you lose. >> it's the lawyers that are winning and erybody else loses. >> john: more lawsuits poured in. >> the year before we filed for bankruptcy we had 25 cases in the last nine months. >> you can sue until they are broke and tired and can't provide jobs and take care of communities and be an entrepreneur.
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>> john: even if their cans were dangerous, they don't take into account of not having a product. during hurricane sandy stores ran out of containers for gasoline. >> we can't keep them in the stores. >> manufacturers are having keeping up. >> john: they didn't know they no longer exist. customers were desperate for cans. >> i looked all over brooklyn. this is first time i found a five gallon gas can. >> people are saying you have a bucket you get gasoline from a gas station. >> one m walked into a gas station will you go ago five gallon igloo cooler. >> they were putting gas in milk gs. >> to make the argument because of lawsuits resulted in the company going out of business, resulted in their being no cans available, resulted people not getting gas cans is ridiculous
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argument. >> john: but we lose products because of fear of lawsuits. that is why america has no aids vaccine and no lyme disease vaccine. >> someone like me to bring something to the marketed because it could cause harm, i'm happy about that. >> john: we pay for his happiness. not just in products we lose but americans pay $1,000 per year for lawsuits. in oklahoma, they let 117 workers go. >> this is wrong. if they can te this and destroy it, they can take just about anything. >> john: they can, but theres something that no one seems to be able to take away. you have to fund them.
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♪ ♪ ♪
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>> john: another myth, government can run the post office like a business. >> they buy commercials like businesses do but real businesses can't lose billions every year. $16 billion last year. post office loses money even though. >> they don't pay sales taxes, they don't pay parking tickets or property taxes. here a reason, check out this little post office in massachusetts. this is one of hundreds that on average bring this less than $700 a month. i don't blame her, but a real business would close a store that can't cover even h salary let alone other costs. >> never mind. they say post offices must serve all of america. there is another post office down a mile down the road. >> john: in fact there are five
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others within a few miles. why do they so many so close to each other. even the locals see the excess. >> they should go down to a couple. >> john: close these post offices. >> we are working on it. >> john: what do you mean? a business just does. >> we are expected to operate like a business but congress hasn't offed the opportunity to do this. >> john: on the website since ben franklin the pos office has changed with america. but you don't chae. you are a government monopoly, you barely change. >> 200,000 less employees than we had. >> big government media would say things like that? >> they are hell bent on seeing the u.s. postal service die. >> john: so the managers wait for workers to quit or retire.
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attrition is kinder, is that why you do it? >> we have union contracts and in no layoff provisions. john: how can you run a business tha way? >> that is how the cookie crumbles. >> john: that is your tax money. >> private delivery services continue to thrive while the postal service. >> fed ex and ups make billions because they innovate and cut costs. postal officials like mickey try to do that, try to close money losers like thes >> john: why weren't they closed long ago? >> political pressure. >> john: congress can do any major change, save billions by adjusting benefit payments? not a chance. >> so the politicians aren't dumb, what are they thinking? >> they are thinking about reelection. >> john: they are supposed to be responsible. >> are we so dumb we lose
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taxpayer's money? >> if the post office could charge anyway they wanted -- not necessarily. >> john: can't they run it like a business? they haveo beg you for permission every time they wanted to do something? >> the post office provides something extremely valuable and that is universal service. that costs something. >> john: universal service every american must get mail service whether you live in the suburbs or deep in the alaska. they haul mayor by mule to the bottom of the grand canyon. >> it is inhe constitution. >> john: but it isn't. they have the power to establish post offices. it doesn't have to and it doesn't have to deliver mail to all of america. >> they aren't living there by force. if you go back to history, it was private carriers that pick up the mail and took it the last
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mile or people picked it up. what we have today is an invention of congress. >> john: who says there needs to be universal service? i could get email? >> there are countries poorer than the united states including the congo and universal mail service for everybody. >> private sector, they go out of business if they lose money. your government, i have to pay forever? >> i don't represented john stossel in congress. overwhelming people don't want them closed. >> john: they are short-sighted and they want free stuff for themselves. aren't youed tbe the grownup, in this case you can't have it all? >> i don't feel a moral compulsion to shut down post offices when they don't want them shut down. public disagree with you. >> john: they do. most people don't want their post office closed. >> not this one.
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>> it's good for convenience. >> no, i don't understand why they are still open but this one has to be. >> john: next, what you don't know about trains and mass transit. transit. >> this thing is like every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s.han any other place in the world. in fact,e've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
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♪ ♪ ♪
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>> john: now, mitd number 2, we need government to invest in infrastructure. that does make sense. we do need ways of getting places faster and building infrastructure does create jobs. >> let's get moving. >> john: politician want to spend more on trains. >> the 220 mile-an-hour train. >> john: cool, but this is only a promise. train line the politician approve starts and ends in the boondocks where economist adrian moore lives. >> i live in tihachpi. >> and high speed rail comes right through my town. this is boondoggle of boondoggles. >> dennis lipton helped get the
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train project funded. >> lots of people live in california. they are starting it in the mide of state. >> we envision connecting los angeles, san francisco, san diego. >> john: that will cost $100 billion. >> you are expecting private investors. have any come forward? >> not athis time but there is every reason to believe they will. >> the private money was a joke because private money will invest in something they can make a profit. >> john: so why does it happen. >> because it's visionar it's very visionary. >> trains will revolutionize our infrastructure. >> john: trains are romantic. he likes amtrak train. >> amtrak trains are packed. >> john: actually here is what it looked like when we taped. on arage, the amtrak trains
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fill just a third of their seats, but if we don't invest in trains what is the mass transit alternative? new buses. this is now the fastest growing mass transit in america. why? >> because it's cheaper. >> john: buses don't get the big subsidies but they are much cheaper than trains. >> i'll take that. >> amtrak is too expensive. i don't have $200. >> john: more typically an amtrak from new york to d.c. costs about 150 and bus ticket is 20. >> it's cheap. >> john: also today's buses are pleasant. they have wi-fi and most for a bus can go where the people go. trains run in straight lines, but people move every which way. only cars and buses can change routes. >> john: they are making money and doing a better job? >> and growing because they are
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more flexible. >> john: which raises the question why should taxpayers lose more money on trains. people cite new york subways. you would lose money, they transport lots of us. >> what would happen in new york if we waited for private investors to build the subway, it would have never happened. >> john: makes sense, if you ask people who built the subways. >> i think it was the government. >> i think it was presint eisenhower. >> union workers. >> john: actually.... >> 1878 before the brooklyn bridge. >> the original subways in new york were all private. >> carried tens of millions of passengers. >> john: after 50 years they tried to raise the fares to a dime. >> they didn't like that mayor took advantage of that and government will take it over and
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we won't raise the fare. >> john: but,, of course, the government did. and now the fare is $2.50 and government built subway construction takes longer. this subway was supposed to be done in 1938. then they said 1980. now, they say 2018. it's taken so long that the subway cars built for it now won't be used because they don't fit the track. we no longer lead the ultra violet lights to kill polio germs. the modern equipment, but why, they had money on the le. >> i want to recognize up front a number of officials, elected officials. >> politicians have different incentives like sucking up to
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other politicians and government workers have time to stand around. despite the delay and despite the billions lost, government wants more trains. >> it's rail, rail, rail and rail. >> john: up next, do you like these beautiful homes. you should. you probably helped pay for
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♪ ♪ >> john: finally our number one myth, people go to washington to serve my fellow americans, they call it public service, but that is not what i notice in how they live. >> i am first entering the home you have this.... >> john: washington's real estate market is hot. there is lots of expensive homes here. >> beautiful gourmet kitchen. >> all glass walls. >> this home is a steal at $2.8 million. >> john: $2.8 million is a steal. >> our real estate market has been recession pro. >> john: why is that? >> we have the lowest unemployment rates in the country. >> john: because government keeps growing so much so most of
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richest counties in america surround washington, d.c. the rest of the america had a housing recession. >> everybody else, housing prices went down, not in washington. >> he is says d.c. is special because the people that control the government and get to tax you live there. >> they like it there. >> government contractors. >> there is reason they go there and stay there. >> john: consider where they work. architecture is grand. many office buildings resemble palaces. >> it's like versailles before the french revolution. they spent their lives in versailles and didn't know much what went went on outside that world. >> john: congressman alan grayson lost his seat but ran again and won. he says if is royalty in america. >> it's not congress, it's the
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lobbyists and who made it that way? >> john: by passing all these laws. if you have a big government there is more government to fight over. >> there is that argument, but will the real well think is not in washington, d.c.. >> john: it's on wall street, he says. there is a lot of money there, but there is a big difference. >> in the private sector if you can find a way to cut costs you are a hero. if you can find a way to cut costs in bureaucracy you are goat. they measure success by the size of their budget. >> big budgets give special interests reason to invest in d.c. and invest they hav unions say teachers are under pay but their union looks rich. this is their headquarters. we're told it's worth hundred million dollars. the atrium is called an environmental oasis. they didn't want us to take pictures of it. >> take a picture of it?
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they told me to wait outside and officials waited to see if we can videotaped. >> we read about the beautiful lobby and would like to show it to the viewers. >> it's like they are sucking money from the rest of the country and building palaces. >> have you been to any mall in america in t past 20 years. isn't it more grand? >> no. >> i would have to disagree. >> john: backs outside i was passed from one official to the next. >> find out more what is going on zbljts. i'm going to have to check. >> john: he went back inside for a while. finally a ruling came down. >> no. >> john: the reason? >> we're not opening the building up. >> john: tried another beautiful building. headquarters of the afl/cio.
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murals made of marble, glass and gold. >> john: john stossel, i want to take pictures of the lobby. i had plenty of time to think about the 12,000 active lobbyists working in washington. they are smart to be here. because washington controls so much but this union doesn't want you to see what they've got. >> i've been notifd by our legal department that we're not because of the state of the mural. >> john: the estate wouldn't allow it. oh, well. the bottom line is that washington, once a sleepy part time home for politicians now resembles versailles. they work in buildings that look like palaces and after work they go home to castles. >> the property is on five acres. >> beautiful shower and his and her closets. >> it helps understandhy people spend millions to win
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jobs here and then.... >> once people come to d.c. they never leave. >> john: that is our show. i'm john stossel. i'm john stossel. thanks f f f f f f [dave gentry] hi, i'm dave gentry. welcome to small stocks and big money. [intro music] [intro music] [intro music] [dave gentry] we have a stupendous lineup this evening, but first a quick update. take a look at our top year to date performers. all of the following companies have appeared on my show, over the last 10 months. remember, if i put a company on my show then i favor the company. i believe that the stock over the long-term will perform,